Australia’s rate stays on hold

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AUSTRALIA’S central bank yesterday chose to keep interest rates on hold at 4.5 per cent and indicated that rates could remain steady over the next few months.

The Reserve Bank of Australia (RBA) pointed to concerns about sovereign creditworthiness in several European countries. Its governor, Glenn Stevens, said that monetary policy was appropriate for the near term.

The pause was widely expected by the markets and it marks the end of a series of rate hikes, which has seen the cost of borrowing in Australia rise 1.5 per cent since October.